Field Notes / Price & Tax
Cannabis Taxin New York
How Much Is Tax on Weed in New York?
Adult-use cannabis sold at a licensed New York dispensary is taxed at a 13% combined retail rate — 9% state excise + 4% local (city/county) — applied at the register. Before the product ever reaches the shelf, a separate wholesale THC potency tax is charged to distributors and folded into the price you see. There is no separate sales tax on adult-use cannabis; the 13% replaces it. So a $50 product rings up at about $56.50at checkout. At Take N' Toke (994 Atlantic Avenue, on the Prospect Heights / Clinton Hill border in Brooklyn), the 4% local share goes to local government — 3% to the city and 1% to the county — per the New York Office of Cannabis Management. Adult-use cannabis is 21+ only, and a valid government-issued ID is required in store.
The 13% Retail Tax, Broken Down
This is the tax line you see added at checkout on every adult-use purchase in New York City.
| Tax component | Rate | Who sets it | Applied where |
|---|---|---|---|
| State cannabis excise tax | 9% | New York State | At retail checkout |
| Local cannabis excise tax | 4% | NYC + county (3% city / 1% county) | At retail checkout |
| Combined retail tax | 13% | — | Added to your subtotal |
| THC potency tax (wholesale) | Varies by product | New York State | Wholesale — already in shelf price |
Note: New York's per-milligram THC potency tax was the original wholesale structure; under the current structure per the NY Office of Cannabis Management the state has moved toward a wholesale percentage model. In either case it is charged before retail and is already reflected in the price on the shelf — it is not a separate line on your receipt.
Walk Through a Real Checkout
Here is how a $50 purchase actually rings up at a licensed Brooklyn dispensary. Adult-use cannabis is 21+ only — a valid government-issued ID is required in store before you can shop.
- 01Shelf price: $50. This already includes the wholesale THC potency tax the distributor paid — you never see that as a separate line.
- 02Add 9% state excise tax. $50 × 0.09 = $4.50.
- 03Add 4% local excise tax. $50 × 0.04 = $2.00.
- 04Combined 13% retail tax. $6.50 total added at the register.
- 05Total at the register: $56.50. Swap in your own subtotal and multiply by 1.13 for a quick estimate.
Estimate Your Total: Subtotal × 1.13
The 13% retail tax makes your total easy to predict — multiply any shelf subtotal by 1.13. Here is the math on a few common carts.
a single pre-roll
one mid-tier product
a typical cart
a stock-up run
Estimates round to the nearest cent before any in-store rounding. Shelf prices already include the wholesale THC potency tax, so the only number added at the register is the 13% retail tax.
Why Is Legal Weed More Expensive Than the Illicit Market?
The honest answer is layered, and tax is only one part of it.
Taxes you can see and can't. Licensed product carries the wholesale THC potency tax baked into the shelf price and the 13% retail tax at checkout. Unlicensed sellers pay neither — so their sticker can look lower.
The cost of doing it legally. A licensed dispensary pays for state-mandated lab testing on every batch, child-resistant compliant packaging, security and inventory tracking (seed-to-sale), licensed cultivators and distributors, and a regulated supply chain. None of that exists in the illicit market.
What you're actually buying. At a licensed shop, the price reflects a tested, labeled product with a verifiable Certificate of Analysis — you know the potency, and it has been screened for pesticides, heavy metals, mold, and solvents. Unlicensed product is untested and unverified; the lower price reflects skipped costs, not a better deal. That is the trade-off New York consumers weigh.
What the Tax Actually Funds
Under the Marijuana Regulation and Taxation Act (MRTA), New York directs adult-use cannabis tax revenue into a state Cannabis Revenue Fund. After covering the Office of Cannabis Management's operating costs, the remainder is allocated by formula: a large share to community reinvestment grants (prioritizing communities historically harmed by prohibition), a share to public education, and a share to drug-treatment and public-education programs. The 4% local portion goes to the city and county where the sale happens — meaning a slice of every Brooklyn purchase stays in New York City.
This is general education, not tax or legal advice; rates and allocations follow the New York Office of Cannabis Management, which is the authoritative source for the current statutory breakdown. Verify current rules at cannabis.ny.gov.
Tax FAQs for Brooklyn Shoppers
How much is tax on weed in New York?
Adult-use cannabis at a licensed New York dispensary is taxed at 13% at checkout — 9% state excise plus 4% local excise. A separate wholesale THC potency tax is already included in the shelf price, so it does not appear as a line on your receipt. Adult-use cannabis is 21+ only, and a valid government-issued ID is required in store.
Why is legal weed so expensive in NYC?
Legal cannabis prices reflect the 13% retail tax, a wholesale THC potency tax built into the shelf price, plus the real costs of licensing, mandatory lab testing, compliant packaging, and a regulated supply chain. Unlicensed sellers skip all of that, which is why their stickers can look lower.
What is the THC potency tax in New York?
New York's THC potency tax is a wholesale tax charged before a product reaches the retail shelf. Under the current structure per the NY Office of Cannabis Management it was originally a per-milligram rate by product type and has shifted toward a wholesale percentage model. Either way it is paid by distributors and is already reflected in the shelf price you see — never a separate checkout line.
Do I pay regular sales tax on cannabis in New York?
No. Adult-use cannabis is exempt from standard New York sales tax. The 13% combined cannabis excise tax applies instead, not on top of sales tax.
How do I calculate the tax on a dispensary purchase?
Multiply your subtotal by 1.13 for a quick estimate of the 13% retail tax. A $50 product comes to about $56.50, and a $100 cart comes to about $113 before any rounding.
Where does New York cannabis tax revenue go?
Under the MRTA, revenue funds the Office of Cannabis Management's operations, then community reinvestment grants, public education, and drug-treatment and public-education programs. The 4% local share stays with the city and county where the purchase happens.
Can I see the tax before I pay at the dispensary?
Yes. Browse the live menu online to see shelf prices, then shop in person — the 13% is added at the in-store register. Ask any budtender at 994 Atlantic Avenue to walk you through a total. Adult-use cannabis is 21+ only, and a valid government-issued ID is required in store.
Keep Exploring
New York Cannabis Laws
What adults 21+ can legally buy, carry, and where you can consume.
Licensed vs Unlicensed
How to tell if a NYC dispensary is legal and verify its OCM license.
Shop the Live Menu
Browse Take N' Toke's full in-stock menu, then shop in person at 994 Atlantic Ave.
Visit / Directions
Hours, parking, transit, and directions to our Prospect Heights store.
Know the Total Before You Walk In
Take N' Toke is a licensed New York dispensary at 994 Atlantic Avenue, on the Prospect Heights / Clinton Hill border. Browse the live menu online to see shelf prices, then shop in person — the 13% is added at the in-store register. Walk-in only, 21+.
For use only by adults 21 years of age and older. Keep out of reach of children and pets. Cannabis can impair concentration, coordination, and judgment. Do not operate a vehicle or machinery under the influence of cannabis. This is general education, not legal or tax advice; verify current rules with the New York Office of Cannabis Management. This content is for informational purposes only and is not legal advice. Consult the New York Office of Cannabis Management for the most current regulations. Licensed by New York Office of Cannabis Management.